- Summary:
- Crude oil price dips further on the day after the EIA cut its 2021 global crude oil demand growth forecast by 60,000 barrels per day.
The US Energy Information Administration (EIA) has said in its latest report just released to the markets that it was cutting the crude oil demand growth forecast for 2021 to 5.32 million barrels per day (bpd), a drop of 60,000 barrels.
The Reuters report which provided the numbers also indicated that the EIA was forecasting that 2022 would see a global oil demand growth of 330,000 barrels per day, representing a 3.83 million bpd year-on-year increase.
Crude oil prices on the Brent benchmark edged lower on the report, down by 0.84% as of the time of writing.
Technical Levels to Watch
Today’s decline follows the dark cloud cover formation, with the active daily candle violating the 67.74 support trendline. We need to see a decline below the 66.81 support (which also takes out the low of the day 1 candle in the dark cloud cover pattern) to see a further decline towards 65.95, with 64.26 and 62.21 also serving as potential barriers to the south. The latter could also intersect the ascending trendline, which is additional support.
On the other hand, price recovery beyond 71.44 is necessary to re-establish the bullish recovery. This allows crude oil price to target the 73.34 and 75.52 resistance levels.
Brent Crude; Daily Chart
